MGT808 Workings of Australias Supermarket Coles Assessment 2 Answer
Assessment Title: Policy Memo: Assessment2
Subject Title: Responsible Leadership
Subject Code: MGT008
The case study takes into account the workings of the Australia’s Supermarket Coles. It points out the necessary facilities that Coles provides to their consumers. It mainly analyses the challenges based on key planning and innovation they mainly faced. The study also elaborates the key challenges that Coles face and how does it impact Coles. Hence, based on the situations, a policy memo will be written to the board of directors regarding how they should take measures to gain their productivity and reputation. Hence, it ends with the conclusion and recommends about the leadership strategies which would allow the company to gain supremacy in the competitive market.
2.0. Case Overview of Coles
Coles Supermarket chains Australia Pty Ltd, operating as Coles, seems to be an Australian grocery, wholesale and product chain, established as member of just the Coles Group near Melbourne. Coles has been one of the businesses involved which has become signatories and therefore is destined by Australian Competitiveness and Buyer Commission's Grocery Code (Coles, 2019).The business has fostered an exemplary global reputation for delivering the latest in new, innovative yet high-quality food offers. Australian retailers, distributors and suppliers have been well positioned to take advantage of huge opportunities in developing International markets, with such a rising number of centre-class customers. Coles is negotiating with some of the retailers directly (Foss & Saebi, 2017). The supermarket has its own networks of distribution and connectivity, without a wholesaler or any other aggregator being necessary. Coles assess every product information closely to make sure the company can continue to meet the needs and preferences of the customers (Coles, 2019). Typically, Coles do this through another analysis of the product portfolio, perhaps on a daily or ad hoc arrangement. Coles often work directly with manufacturers and wholesalers, instead of just distributors, potentially applying to a considerable number of distributors the security of just the Grocery Code.
Hence, the Grocery Code essentially protects the major market players which, in terms of becoming a private industry code of practice, by way of a large segment of the market .A significant number of distributors respected Coles, as shown by the supermarkets confidence in filing complaints including the experience with just the results Coles got (Coles, 2019). Many manufacturers, however, also believe that a certain model is not adequately impartial to avoid reprisals or skewed decision-making. Coles was convicted by manufacturers when interacting with their manufacturers of just using low-handed techniques. Coles were also criticised of using unauthorized market methods to force providers down prices. Coles supermarkets have been transforming into self-service retail outlets which could set a new standard throughout the 21st generation to grocery stores (Coles, 2019). By the middle of the century, the business has changed its path as a convenience store out of its beginnings and lined its attractions towards becoming Australia's largest food retailer, including all the unique logistics, supply chain management and distribution networks needed to meet such a dilemma (Mazzucato & Penna, 2016).
During the developmental years, Coles Supermarket faced many of the key planning challenges as well as the innovative challenges in relation with the responsible leadership function:
3.1. Key planning Challenges
The key planning challenges are:
Planning challenges on Market Strategies: The placement and specific brand marketing strategy is not properly defined and planned, which may lead to opponents’ attacks throughout this market. Hence, due to this reason the development and reputation of the supermarket faces the possible risk continuously impacting it severely (Ayala, 2016). On the other hand, intense rivalry, which indicates that sustainable profitability had doubled the number of companies in the business world of Australia over the past two years, placing inflationary pressure not just on the productivity but also because of overall sales, thereby gaining in popularity of Coles’ serious challenges as the business of Coles Supermarkets needs proper strategy planning to be on the top position in their market.
Planning challenges on Recruitment: Coles need experience as the Coles workers are not very experienced in managing the technology. The brand's production and price will also be decreased if technical progress is made. Hence, due to lack of training and experiences both Coles and its employees faces risk, therefore, causing a severe casualty towards the company. As a result of this, the company was unable to address the fresh entrants' difficulties in the newscast and lost high profit margin in the classifications of niches (Smith, 2018). To address these difficulties, Coles must build an administrative positive feedback loop directly from either the sales recovery team. Hence, the major challenge for them is team coordination and proper planning for the recruitment. The shortage of qualified labour in some global markets constitutes a threat towards Coles' consistent growth in profitability in those markets.
Planning challenges for global expansion: As the business is run in dozens of countries, it would be susceptible to currency movements, particularly given the polarized political environment in numerous overseas markets (Phillipov, 2017). Therefore, given the magnitude of growth and multiple geographies that the organization plans to increase into, Coles wants to put more resources into infrastructure to automate processes throughout the board. Even now, innovation development is not in line with the business's plan.
3.2. Innovation Challenges
The innovative challenges are:
Lack of pricing factor in marketing innovation: The productivity rate and the proportion of Coles' financial contribution are under the market average which requires innovation in product lines in term of price. Indeed, the stock of days is large compared to the rivals, which makes the company generate more resources to invest throughout the market (Coles, 2016). This has had an effect on Coles' lengthy-term growth. Financial planning has not been carried out properly or effectively. The existing asset balance and liquid asset balances imply that the company should be able to use the money more quickly than it actually does by applying some innovative strategies.
Lack of Ethical Innovation: The most underlying issues facing the majority share are ethical problems. Coles Company's big problem lies with the fact of running the market with faith and integrity. It had also been said that firm will handle each of its clients with respect but they should as well concentrate on their staff and hire the company's skilled workforce according to technologies (Pearson, 2017). They can have innovative strategies to make a secure workplace for their women employees.
Employees’ resistance to embrace technology: In the longer term, technological advances introduced by the competition or market disrupter may pose a significant threat to the business. there employees resistance to accept the Technologies aimed at increasing the interaction of the consumer in the supermarket, such as quicker checkout, and ways that will provide the consumer with detailed information can sometimes be hard to justify as retailers focus towards their end result (Dixon, 2016). The effect of new system implementation, training, servicing, and assistance can contribute to the unwillingness of a consumer to just acknowledge every new technology.Several software acquired by vendors lacks capacity coherence, has intersecting scopes, and therefore is rarely incorporated in terms of usability or data. Most older systems are architecturally obsolete or restrictive, making it more difficult to modify procedures and financial reporting, add new tools, and so forth, without accessing the encryption keys (Begun & Clapp, 2016). Because new innovations being provided over time, this might pose a significant disadvantage to retailers in Coles.
3.3. Impact on productivity and reputation
The significant fact about the supermarket is that it suffers from its challenges more unable to gain profit, hence, as a result it affects both its productivity and reputation. Mainly, for a supermarket like Coles Cost as in labour cost, new technologies but unskilled employees and poor leadership and team coordination makes the biggest impact (Lüdeke-Freund, 2019). Hence, installing a new technology means to train, learn and teach people to operate the technologies used by the organization means time consumption. More, skilled workers mean increase in labour cost which will impact the Coles in both ways. In fact, many vendor-acquired code lacks resource reliability, has tangency scopes, and thus is rarely implemented in terms of functionality or information (Przychodzen & Przychodzen, 2015).Most old machines are structurally obsolete or burdensome, making it harder to change processes and financial analysis, adding new methods, and many more, without encryption. This could be a big disadvantage for distributors in Coles even though new inventions are being supplied over time.
Hence, the marketing of brands has improved massively. Even though the product is a massive success, there is no proper definition of its positioning or precise business model, which can lead to threats by opponents across this market (Long, 2019). Thus, for this function, the grocer's growth and credibility faces the potential risk that continually affects it seriously. Eventually, often circumstances may occur where a representative of a group has interests that clash with Coles. For example, there is a constitutional violation where a participant of a team determines a Coles financial decision or affects a decision that offers a financial gain to itself or a relevant foreign government such as a spouse, family, company or employer (Janczewski, 2019).Coles acknowledges that there is opportunity for legal issue in a variety of situations concerning team members, clients, vendors and other stakeholders, and will collaborate with group members to address possible and real improprieties.
As being one of Australia's biggest supermarket. Coles can drastically improve the revenue and financial management efficiency via the deployment guideline. When strategy supplier wants a thorough analysis of the operational range of a business and implements a sensible strategy to boost profitability, the strategy builder considers the cultural enterprise, employee democracy index and client satisfaction assessment as well as other quantitative indicators. Hence, not only that it should take measures to recruit and train employees to teach them about the new technologies and it should enhance better leadership and team coordination.
The concerned part explains the steps that Coles should take to remove the flaws so that it becomes both competitive and skilled in the future prospects:
5.1. Improvement of key planning challenges
Strategy for marketing with democratic leadership: It is definitely worth a look that Coles should have a strong emphasis on both long-term and brief-term marketing techniques including the current tactics. This will help Coles increase in the future (Dixon, 2016). The original point of saying Coles should be an opportunity to be with representative quality and the go to outcomes, in addition to concentrating on their healthier items that are quickly moving inside the supermarket for their consumers who need support monstrosity wellbeing. In this case, with the help of democratic leadership Coles can have ideas of their employees.
Training employees before recruiting with autocratic leadership: To let the employee guide as well as learn the new technologies, Coles must enhance facilities to train people by using autocratic leadership. As for every supermarket, the requirements for consumers are mandatory so letting the new facilities will help it take a better step towards success (Janczewski, 2019).
Command of Coles Products system distribution as Expansion with transformational leadership: Coles supermarket's duties are largely performed by the three eastbound logistics. Through managing the system, it could guarantee the reliability of the goods and perhaps improve the effectiveness of the delivery. Currently, the channel links between various Coles franchises are loosely defined (Phillipov, 2017).In addition, notifications can indeed be sent to the consumer whether there are new projects in the shop. There have been people from various countries as Australia may be a mega-cultural country and they can implement them with transformational leadership.
5.2. Improvement of innovating challenges
Cost Performance sing cost leadership strategies: Since a store such as Coles has been very big, this will also raise operating costs. Labour costs are amongst the main operating cost issues. All company should be aware of the profitability gained from the laboratories (Ayala, 2016). These should be generated fairly because more sums per hour can be charged by a company to the workers .Together with the industry and communities, Australian consumers are really happy about the reasonable price throughout the products getting decided to invest by either the Coles that has been achieved by Ian McLeod, hence, who has been Coles ' managing director. Thus, by using cost leadership strategies, Coles can be able to increase the efficiency by reducing the production cost.
Using communication and democratic leadership to solve Ethical problems: By analysing the problems within workplace, it is identified that Coles has problems with their existing leadership style. Only they can overcome their ethical problems, if they manage to implement proper communication platform for their customers and their employees as well. This democratic leadership will help them to identify the issues and the leaders can immediate perform on it (Coles, 2016).
Technological Advances using transformational leadership: Coles supermarket needs to implement several changes which are required to advance the existing technology within the workplace (Lyytinen, Yoo, & Boland Jr, 2016). If the leaders manage to use transformational leadership styles, this will help in transform the work mode of the departments and attract more innovative ideas. As well as, by updating of the software, Coles can perform their business activities in a faster and innovative way